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HomeMy WebLinkAbout0259 .1 Borrower and Lender covenant and agree a. followr. 1. Payment of Prlaeipal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment snd late charges as provided in the Nose, and the principal of and intereston any Future Advances secured by this Mortgage. 2 Funds for Ta:es and Insurance. 3ubjed to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installment of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds")equal to one twelfth of the yearly taxes and assessment which may attain priority over this Mortgage, and ground rent on the Property, if any. plw o~~- twelfth ofyearly premium installment for hazard insurance, plus one-twelfth of yearly premium installment for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessment and bills and reasonable estimates thereof. The Elmda shall be held in an institution the deposit or account of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessment, insurance premiums and ground rent. Lender may not charge [or so holding and applying the Funds, analyzing said account, or verifying and rnmpiling said assessment and tilt, unless Lender pays Borrower interest on the ~rrrda and applicable law permit Lender to mate such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid b Borrower, and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required b pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credit and debit to the Funds and the purpose for which each debit to the Funds was made. The F~nd~ are pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installment of Funds payable prior to the due dates of taxes, t assessments, insurance premiums and ground rent, shall exazed the amount required to pay said txea, assessment, insurance premiums and ground rent as they fall due, such excess shall be, at Borrower a option, either promptly repaid to Borrower or credited to Borrower on monthly instilment of Funds. if the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessment, insurance premiums and ground rent as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mniled by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly, refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, bender shall apply, no later than immediately prior to the sale of the Property or it acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. - 3. Application of Payment. Unless applicable law provides otherwise, all payment received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amount payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liana. Borrower shall pay all taxes, assessment and other charges, fines and impositions attributable to the Property which may elfin a priority over this Mortgage, and leasehold payment or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amount due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly famish to !.ender receipts evidencing such payment. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long tu: Burrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enformment of such lien in, legal proceedings which operate to prevent the enforrnment of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lose by fire, hazards included within the term "extended coverage," and such other hazards as Lender may reyuire and in such amount and forauch periods as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insurances shall he chosen by I;,~rn,wer subj~Yt to approval by Lender; provided, that such approval shall not be unreasonably withheld. All premiums on insuramr tH~licies shall tK paid in the manner provided under paragraph l hereof or, if nut paid in such manner, by Borrower making pa~•ment, when due, directly to the insurance carrier- , All insurance policies and renewals thereof shall be in form acceptable to !.ender and shall include a standard mortgage clause in favorof and in form acceptable to bender. I.endershall have the right to hold the policies and renewals thereof, and Bonowershall promptly furnish to [.ender all renewal notices and all receipts of paid premiums. In the event of los.R, Born~wer shall give prompt notice to theSnaurance carrier and Lender. Lender may make proof of logs if not made promptly by Borrower. Unless [.ender and Borrower otherwise agree in writing, insurance prcK-eeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such i f restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days fmm the date notice is mailed by bender W Bonrower that the insurance carrier offers to settle a claim for s insurance benefit, Lender is authorized to rnllect and apply the insurance prareds at Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application otproceeds to principal shall not extend or postpone thedue date of the monthly installment referred to in paragraphs 1 and'! hereof or change the amount of such installment. If under paragraph 18 g hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds t ~ thereof vaulting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this j ~ Mortgage immediately prior to such sale or acquisition. ` 6. Preservation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Development. Borrower shall keep s the Property in good vpair and shall not commit waste or permit impairment or deterioration of the Property and shall rnmply with the & provisions of any lease it this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations'under the declaration or covenant creatingor governing the condominium or planned ~ unit development, the by-laws and regulations of the condominium or planned unit development, and constituent document. If a condominium or planned unit development rider is executed by Borower and recorded together with this Mortgage, the covenant and :agreement of such rider shall be incorporated into and shall amend and supplement the covenant and agreement of this Mortgage as if the rider were a part hereof. T. Protection of Gender's Security. If Borrower fails to perform the rnvenant and agvement contained in this Mortgage, or if any action or proceeding is commenced which materially affect Lender's interest in the Property, including, but not limited to, eminent domain. ~ insolvency, code enforcement, or arrangement or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make such appearances, disburse each soma and tke such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney a fees and entry upon the Property to make repairs. If Lender required mortgage insurance ae a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effeM until such time as the requirement for such insurance terminates in accordance with Borrower's and Lendei s written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. t ` Any amount disbursed by Lender persuant to this paragraph 7, with interest thereon, shall bernme additional indebtedness of I Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amount shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from > time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which event such amount shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph T, shall. require Lender to incur any expense or tke any aMion hevunder. • IiR s ~ - BQOK t~~ PdGE 259